Caterpillar - 1792 Exchange

Rating Overview

Caterpillar is Lower Risk.

Caterpillar is Lower Risk. The company does not yield to political activism in shaping corporate governance, preventing initiatives that potentially alienate consumers, divide employees, and harm shareholders. The company elevates merit, excellence, and integrity ahead of race and identity-based policies. Caterpillar does not embrace corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues. This approach protects free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Lower Risk
Discriminatory Philanthropy	High Risk
Employment Protection	Medium Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	Medium Risk
Funding	Lower Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Lower

Rationale:

Caterpillar has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (1).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

High

Rationale:

Caterpillar does not match gifts to “tithes, church-related commitments, religious organizations classified by the IRS” (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

Medium

Rationale:

Caterpillar does not provide viewpoint protections for its employees (1).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Medium

Rationale:

Caterpillar had a history of using its reputation to support divisive causes, organizations, and policies and scored a 40 out of 100 on the Human Rights Campaign’s 2023-2024 Corporate Equality Index. However, in September 2024, the company pledged to have all speakers and events “approved at the executive level to ensure that nothing is divisive or politically charged” (1)(2)(3). Caterpillar’s CEO, James Umpleby III, is a member of the Business Roundtable and signed its 2019 Statement on the Purpose of a Corporation, which promotes stakeholder capitalism over traditional obligations to shareholders (4)(5). Otherwise, there are no publicly known cases of the company using its reputation to advance ideological causes or policies (6).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Caterpillar had a history of using its funds to support divisive causes, organizations, and policies. However, in September 2024, the company pledged to no longer donate to any divisive events (1)(2)(3)(4)(5)(6)(7). The company has not used corporate funds to advance ideological causes, organizations, or policies (8).